Indonesia was an enthusiastic participant at the second Belt and Road Forum held recently in Beijing. Although Indonesian President Joko Widodo did not attend the event, he sent a high-level delegation led by vice-president Jusuf Kalla to the summit, where more than 20 agreements were signed on the sidelines.

Having survived smear campaigns alleging he is selling out the country by soliciting Chinese investments, the president, popularly known as Jokowi, is likely to secure a second term when the final results for the country’s April 17 election are released. He is expected to continue seeking Chinese investments to develop infrastructure in the sprawling archipelago.

However, Chinese investors have found that despite having support from the top levels of the Indonesian government, investing in the Southeast Asian nation is not at all straightforward.

One major obstacle is ingrained anti-Chinese sentiment in the country, a legacy from an attempted coup in 1965 that is not likely to go away any time soon. That event – blamed on the Indonesian Communist Party, which was allegedly backed by the Chinese Communist Party – sparked a communist witch-hunt in Indonesia that left an estimated 500,000 people dead in 1965-66.

The anti-Chinese sentiment still lingers in parts of Indonesian society. In the recent election campaign, many Indonesians believed in fake news stories circulated accusing Jokowi of being a communist due to his perceived closeness with Beijing

In his first term, Jokowi had attempted to rehabilitate those who had become victims during the communist purge in the spirit of bringing about national reconciliation, but had to call it off due to persistent opposition.

Overseas direct investment (ODI) from China may be shifting toward the Belt and Road Initiative (BRI) as Chinese companies face growing difficulties entering the US. Chinese and foreign experts said the shift could bring significant changes to the global investment landscape, and could benefit BRI countries and regions with investment grade ratings.

The comments come as Chinese ODI to the US fell to a seven-year low in 2018, while steadily growing in BRI markets.

Chinese investment to BRI markets grew at an annual rate of 5.2 percent from 2013 to 2018, or $90 billion, Ministry of Commerce data shows.

The Global Times reached out to a dozen Chinese companies and top industrial leaders in their respective fields for their takes on the trend.

Company representatives typically declined to comment on their firms' investment plans in the US, citing disclosure concerns. However, many have shown enthusiasm to ride on the momentum started by the BRI, even as many of these firms cannot be categorized as typical BRI firms, like infrastructure giants engaged in overseas projects on state credit.

China is set to hold the second Belt and Road Forum for International Cooperation. Six years after its inception, the initiative has been generally welcomed by developing countries and regions and emerging economies. Moreover, the China-proposed global connectivity program has recently gained official endorsements from major developed Western economies, such as Italy.

The response from Chinese companies coincided with a report that Baker McKenzie released, which said more than 80 percent of 200 respondents from the Chinese mainland and Hong Kong now see the BRI as either hugely important or fundamental to their business strategy.

"In certain sectors such as infrastructure, Chinese firms may be able to shift their international infrastructure-related investments away from the US toward BRI partner countries," Rajiv Biswas, APAC chief economist at IHS Markit, told the Global Times.

Biswas said the risk of investing in many BRI partner countries may be higher than in the US, but there are "investment grade" alternatives. For example, a number of EU partner countries and Indonesia are poised to offer an attractive long-term investment environment for sectors such as infrastructure or manufacturing.

]]>it@mxmedia.com.hk (Super User)NewsWed, 08 May 2019 00:00:00 +0000Britain and China to hold new round of financial talks in London in Junehttp://chinainvestin.com/index.php/en/invest-in/news/3820/britain-and-china-to-hold-new-round-of-financial-talks-in-london-in-june
http://chinainvestin.com/index.php/en/invest-in/news/3820/britain-and-china-to-hold-new-round-of-financial-talks-in-london-in-june

Britain and China will hold the next round of their Economic and Financial Dialogue (EFD) in mid-June in London, finance minister Philip Hammond said, after months of reports that talks had been delayed by diplomatic tension.

The EFD has been used in the past to announce closer cooperation on trade and banking initiatives, and to sign commercial contracts.

However, relations between London and Beijing have been strained in recent years, most notably after a British warship sailed close to islands claimed by China last August.

The EFD talks were agreed during Hammond's visit to Beijing to speak at a summit on China's Belt and Road Initiative, championed by President Xi Jinping, which envisions rebuilding the old Silk Road to connect China to Asia and beyond with extensive infrastructure investment.

"By deepening our cooperation on financial services, trade, and investment with international partners, we can ensure Britain's global future," Hammond said in a statement.

In that light, Britain will view the agreement of potentially lucrative talks as a success and a step closer to rebuilding the close ties seen earlier in the decade when then-finance minister George Osborne successfully courted Chinese investment.

Hammond said the talks would continue the "golden era" of cooperation - a phrase used repeatedly since Xi's state visit to London in 2015 which has become a byword for Britain's pitch to tap the investment power of the Chinese state.

Chinese Vice Premier Hu Chunhua expressed regret to Hammond that the South China Sea issue had harmed ties, and that he hoped Britain could "respect China’s core interests and important concerns".

Hammond said he shared Hu's regret that there had been "some difficulties" in making progress before adding: "Of course, you understand that the UK takes no position in relation to the issues in the South China Sea."

As China fuels innovation in the region, countries must prepare to mitigate the risks.

While the U.S. and allies distance themselves from Chinese tech companies such as Huawei, China has become Latin America's top investor of its boomingtechnological sector. Tencent invested $180 million in Latin America's top unicorn company, Brazilian fintech firm Nubank. Large Chinese companies have acquired local startups, such as Didi Chuxing purchasing Brazil's 99 Taxis and initiatives such as Chinnovation, which pairs up Latin American and Chinese tech investors, signal this trend will only increase. Even Baidu’s discontinued $60 million fund for Brazilian startups last year, left the country saying they intended to continue to invest but directly from their home front.

Chinese investment in regional companies has been accompanied by deep penetration of its own firms. Telecommunications companies such as Huawei and ZTE have largely integrated into the region. Noticias Águila, Mexico's most downloaded news app, was created by a Shenzhen-based company. Huawei is one of the top contenders to build a fiber-optic cable connecting Chile to Asia, is already building one connecting Sinaloa to Baja California Sur in Mexico for $14 million, and like Alibaba will be competing with Amazon by setting up data centers in Chile.

Possible risks

Where Chinese companies go, allegations of espionage, hacking, and unscrupulous business practices usually follow. In Poland, a senior Huawei employee was arrested in January for allegedly spying on the Polish government. In the UK, the British government found evidence that the company’s telecommunication equipment could be compromised. Despite the risk, Huawei is the contractor of choice to build digital infrastructure like 4G mobile networks across a broad swathe of Latin America.

The complex nature of telecommunications means changing suppliers is easier said than done once a company builds your mobile network. This over-reliance means that Huawei can afford to drag its feet in addressing the security concerns of governments. Indeed, after the UK raised issues with the security of the equipment, the company said it would take five years to address the country’s concerns.

Furthermore, companies such as ZTE have exported surveillance technology to Bolivia, Ecuador and Venezuela. While these systems are geared towards natural incidents and cutting crime, they can lead to breaches of citizens' private information, increased censorship and new tools for authoritarians. In Venezuela, ZTE is helping the Maduro's government build a national identification system that can help the embattled government crackdown on dissent.

More than 30 heads of state arrive in Beijing to court its massive outward investment plan, but the UN chief and others warn the investments must be sustainable.

China launched an "international green development coalition", in the face of growing concern about its coal investments.

The environment ministry hosted an event on the "green belt and road" as part of a leaders' summit in Beijing to promote Chinese investment in partner countries.

According to the official progress report on president Xi Jinping's flagship foreign policy: "The Belt and Road Initiative pursues the vision of green development and a way of life and work that is green, low-carbon, circular and sustainable. The initiative is committed to strengthening cooperation on environmental protection and defusing environmental risks."

However, China's energy investments abroad continue to favour coal, threatening to blow the global carbon budget. More than 30 heads of state are due to attend the summit, including from countries with shared coal, oil and gas interests such as Russia, Indonesia and Pakistan.

In a press conference before travelling to join them, UN chief Antonio Guterres said greening the initiative was important to meeting international climate goals. "We need a lot of investments in sustainable development, in renewable energy, and a lot of investments in infrastructure that respect the future," he said, as reported by Xinhua.

The European Union has just introduced a way to scrutinize and, in some cases, reject incoming foreign direct investment deemed dangerous for national security and critical European interests. The E.U.-China Summitalso takes place this week. Is this new foreign investment screening simply a protectionist move prompted by fears of a Chinese takeover of Europe? Here are five things to know about the new E.U. policy.

The new screening framework isn’t a mirror of the U.S. CFIUS mechanism.

The new European policy does not enable the E.U. to screen and block investment coming into its member states. Neither does it force individual countries to screen at the national level — only 14 of the 28 E.U. members have national screening legislation in place.

Here’s how it works: For now, the E.U. screening mechanism will facilitate the sharing of information on planned non-E.U. investment in critical technology and infrastructure, such as electric batteries and ports. This will allow any E.U. member to voice concerns about a proposed investment — and in some cases the Commission, the E.U.’s executive body, will give its opinion. Ultimately, however, the E.U. country targeted for foreign investment will make its own screening decision. Germany will not be able to prevent, say, Greece from accepting a deal with a Chinese investor.

But Chinese investments in Europe have declined since 2016, in large part because of stricter Chinese controls over capital outflows. China is still a small investor in Europe. In France, for instance, China lags far behind the United States, Germany, the Netherlands and Britain as source of investment. Even in Greece and Portugal, two countries where Chinese companies bought distressed assets for privatization after the euro crisis, China ranks far behind many European countries as a foreign investor.

Vietnam has made rapid progress over the past several decades, averaging GDP growth rates exceeding 7% all throughout the 1990s and 2000s.

The country remains one of Asia’s more promising markets as it opens to foreign investment – and buying property is arguably the best way to gain from Vietnam’s economic rise as a whole.

Vietnam has especially become competitive in its industrial sector. China is falling in popularity among global companies that increasingly prefer building factories in Southeast Asia.

This is probably caused by rising costs, more regulations, weaker growth, and a strong “home-bias” in the Chinese market. A looming trade war with the United States also certainly doesn’t help problems in Asia’s biggest economy.

As such, many investors are looking at Vietnam – Southeast Asia’s third most populous country and one of the fastest growing in the region. But foreigners have, at least up until recently, had few options when investing in Vietnam.

Lack of investment variety in Vietnam is quickly changing though. During the summer of 2015, the government relaxed property ownership rules for foreign investors.

Anyone with either a 3-month tourist or residence visa may now own land on a renewable, 50-year lease. Foreign companies have even less restrictions when buying property. It’s not quite that simple and there are additional rules, discussed further below, that you should consider.

However, there’s little doubt Vietnam is going in the right direction and making it way easier to invest here as a foreign buyer.

Places like Cambodia and Thailand make purchasing property as a foreigner less difficult. With that said, the Vietnam government has made clear which way they’re moving towards by lifting restrictions on foreign ownership of both companies and real estate.

Until things are easier for investors, there are still countless ways to get your feet wet and start investing in Vietnam property. It’s definitely bureaucratic, but once you have figured everything out it’s possible to (at least de-facto) own apartments and houses alike in Vietnam.

A crackdown on foreign buyers in British Columbia has Chinese investors looking east for other opportunities in Canada, with Toronto emerging as a prime destination for commercial investment.

As Chinese investment in foreign real estate retreated globally in 2018, Vancouver saw a particularly sharp drop-off as a series of new taxes kicked in, Bloomberg reported. Meanwhile, Toronto saw a slight increase in investment from Asia as a whole, beating Vancouver for the top spot according to data from CBRE, which includes only known buyers.

Chinese investment in Vancouver “had always been predicated on land, placing bets on land, whether it’s old shopping centers or office buildings even — they see underlying development and land value,” Avison Young’s Bal Atwal told Bloomberg. “They’re looking at Toronto now because they’re seeing a better arbitrage on that than they are here.”

CBRE, which has been heavily involved in bringing Chinese investment to Canada, is now planning to shift more of its focus to Toronto. The city’s booming tech and financial services market is seen as another potential draw for investors.

“That spells money because young people have to consume, they’re growing families,” CBRE executive vice president David Ho said. “That’s a huge advantage against the Vancouver market, which is more of a retirement market.”

Grenada is an island nation in the Caribbean, located in the West Indies. It is located northwest of Trinidad and Tobago, northeast of Venezuela and southwest of Saint Vincent and the Grenadines. This English speaking country obtained independence from the UK in 1974 and is part of the Commonwealth. Queen Elizabeth II is the reigning constitutional monarch and head of state.

Grenada has a population of c.107, 000 and boasts a 98% literacy rate. This island has a land area of c.134 sq mi. The GDP of Grenada is c.US $1.12 billion and the currency, the East Caribbean Dollar, maintains a fixed exchange rate of 2.7 to the US Dollar. Grenada enjoys a politically stable government.

Grenada allows for individuals to obtain citizenship through a government sponsored investment program.

Those meeting the requirements of the program are rewarded with full citizenship, including a passport and the right to permanently reside and work in Grenada. Grenada's economic citizenship program was established in 2013 and has major competitive advantages over similar Caribbean Programs.

Grenada Citizenship: Investor Benefits

Citizenship is for life for the investor, spouse, children, parents and siblings.

Citizenship is passed down through generations.

Applicants are not required to visit or reside in Grenada.

Grenada's passports are issued within approximately 90 to 120 days of filing an application.

A tax-efficient jurisdiction.

Citizens of Grenada may travel visa-free to more than 130 countries, including the United Kingdom, Russia, China, Schengen European countries and most British Commonwealth countries.

Citizens of Grenada are eligible to apply for the US E-2 visa.

Citizenship includes full residency status and the right to work in Grenada.

Dual citizenship is permitted without any requirement to notify the applicant’s home country.

Exit options provide the ability to realize capital gain on the investment after a 5-year holding period.

Range Developments Offering: Pedigree, Preservation, Protection

An investment in our real estate project entitles the buyer to:

An investment share in an award-winning hospitality brand dedicated

to sustainability and wellness

Benefits associated with Citizenship of Grenada

Investment security with the leading CBI hospitality developer with a

track record of successful projects

Partnership with an award-winning, globally recognized brand

Exit options after 5 years

Possibilly to apply for the US E-2 Investor visa

Grenadian Citizenship: Relocating to the United States of America

Grenada is the only Caribbean country (with a citizenship by investment program) whose citizens (including

economic citizens) are eligible to apply for a US E-2 visa (under a treaty entered into between the United

States of America and the Government of Grenada). There have been a number of successful cases where

Grenadian economic citizens have received a US E-2 visa.

A US E-2 visa allows an investor to live and do business in the United States of America in exchange for

a “substantial” investment (minimum recommended threshold is US $250,000) in the United States of

America. This investment must be in an enterprise that the investor is able to “develop and direct” and

which is at least 50 per cent owned by the investor.

Unlike many countries which have entered into a US E2 Treaty with the United States of America,

Grenadians who have been granted a US E-2 visa are allowed to stay in the United States of America for

5 years with no restrictions on the number of times their US E2 visa may be renewed.

The investor’s spouse and dependent children (under 21) may also be included in US E2 application allowing

them to also relocate to the United States of America with the possibility to work and study in the United

States of America.

Key Benefits: US E-2 Visa

Expeditious processing - a US E-2 visa can generally be obtained within 3 months.

Investor’s spouse and dependent children under 21 may be included.

Investor’s spouse can apply to work anywhere in the United States of America.

Dependent children can study anywhere in the United States of America.

Investor and his dependents may spend time in the United States of America

without being subject to worldwide income taxation.

Investor may renew US E-2 visa and stay in the USA as long as their business

continues to meet the requirements.

Can be used as a precursor to an EB-5 application.

Grenada Real Estate Investment & Application Process: A Snapshot

Below is the cost for a family of 4 (2 adults and 2 children under 16 years old, excluding legal fees).

Overall investment including Application and Government Fees will be as follows:

Legal and attestation fees will vary depending on investor's location and number of dependents.

Dependents below the age of 16 years are not required to pay due diligence fees.

To maintain citizenship, investors are required to hold their qualifying investment for a minimum of 5 years.

Therea_er, the investment may be sold and the subsequent investors may also apply for and benefit from

citizenship, utilizing the same investment instrument. The original investor will be entitled to retain citizenship of Grenada.

Application Process

Step 1: Reservation Form

The investor signs a reservation form and submits a deposit of US $22,000 against the investment of US $220,000 to secure their interest in the real estate option for the CBI Program.

Range Developments can assist the investor with selecting a lawyer and service provider to process their application.

Step 2: Application Forms & Document Submission

The investor collates the required documents (please see next page) and completes the required CBI application forms with the assistance of their lawyer(s). Legal fees, due diligence fees, application fees and processing fees must be paid along with the application directly to the lawyer. The investor will execute the Sale & Purchase Agreement at this stage.

Step 3: Application Processing & Payment

Application processing takes approximately 90-120 days. Upon approval of the application the investor will pay within 7 days, the remaining balance of US $198,000; government fees of US $50,000 for the main applicant and up to 3 dependents, share registration fees and other miscellaneous fees. Range Developments will issue an Ownership Certificate to the investor.

Step 4: Closing and Transfer

Proof of ownership will be submitted to the government and the CBI unit will issue the Certificate(s) of Citizenship and subsequent Passport(s). This usually takes 3-4 weeks.

Grenada Citizenship & Passport Application: Required Documents

For each applicant:

CBI Form l - Personal information form

CBI Form 2 - Fingerprints form (for all applicants above 16 years old)

CBI Form 3 - Home o_ce particulars form. The main applicant signs the form on behalf of the minor (under 16 years old)

CBI Form 4 - Medical Form, dated signed and stamped by the Medical Doctor

Application for Grenadian passport form (for a dependent child under 16, section 11 is

completed by the main applicant)

Oath of Allegiance (for a dependent child under 16, it is signed by the main applicant)

Authorization letter for each applicant above 16 years old

Grenada Citizenship & Passport Application: Required Documents

For Main Applicant:

Sales & Purchase Agreement

CBI Form 5 - Employment status, wealth & business a_liates form

Proof of source of funds

CBI Form 6 - Investment confirmation form

Original bank reference letter

Character reference letter

Curriculum vitae

Proof of address (utility bill for the last 3 months or a_davit sworn by the main applicant if the full address is not stated on the utility bill; certified copy of lease agreement stating full address; credit card /bank statement showing full address)

A_davit or support/dependence

Know your client application form

For spouse:

A_davit of Consent from spouse or ex-spouse relating to children, if applicable

Curriculum vitae

For non-applicant spouse:

CBI Form l - Personal information form

CBI Form 2 - Fingerprints form

Original Police Certificate of Character from each country in which the NAS has lived for more than 1 year in the past 10 years

Certified copy of National ID card, if applicable

Certified copy of birth certificate

Curriculum vitae

A_davit or support/dependence

Due diligence fee of US $8,000

Grenada Citizenship & Passport Application: Required Documents

For sponsor (if applicable):

CBI Form l - Personal information form

CBI Form 2 - Fingerprints form

CBI Form 3 - Home o_ce particulars form

Proof of source of funds

Original Police Certificate of Character from each country in which the sponsor has lived for more than 1 year in the past 10 years

WHEN discussing the most dynamic emerging markets globally, it is hard to lose sight of Vietnam. Driving its strong economic growth is an expanding middle class with thickening wallets. Rapid urbanisation supported by a young, growing and educated population all bode well for an economy with one of the world's fastest growing gross domestic product (GDP) rates.

Understandably, this has fuelled the appetites of global investors looking to make their mark in Vietnam's burgeoning domestic real estate market.

Home to Asia's best performing stock market in 2017 and the second largest retail market in 2018, much of the appeal that Vietnam currently holds sits, ironically, in its auspicious future. Since 2015, the bulk of big-ticket mergers and acquisition (M&A) transactions that we have seen have been championed by those investing in property development sites, followed by hotels, apartments and offices. This is testament to the fact that those pouring money into Vietnam are in it for the long run.

Over the last three years, foreign investment in Vietnam's real estate market has been increasing year on year. In particular, developers from Singapore, Japan and South Korea have favored development sites in downtown areas and within close proximity to the metro stations. Local developers usually enter into joint venture agreements with foreign developers on the premise of optimising decision-making in site sourcing and project management.

Running alongside the strong demand for commercial sites is the relative shortage of supply, which is especially prevalent in the market for prime retail and office spaces in Ho Chi Minh City and Hanoi.

Grade A rents in Ho Chi Minh City have increased from about US$35 per square metre per month (psm/month) in Q2 2016 to US$43 psm/month in Q2 2018, which translates to a healthy 23 per cent growth.

Similar office rental growth has been observed in Hanoi over the past two years. In the office market, an increasing presence of international firms has resulted in developing areas absorbing the overflow of occupants. But progress in office construction has been pleasing, and the second half of 2018 will bring a significant amount of Grade A office supply onto the market.

Another area generating solid demand is the residential sector, and this segment of the market stands to inject further momentum in the economy - to illustrate, the largest initial public offering (IPO) this year was that of a luxury residential developer in which Singapore's sovereign wealth fund GIC recently acquired a stake.

Investors from Singapore, Hong Kong and Taiwan have shown much enthusiasm in the serviced apartment and condominium markets, together representing 75 per cent of total buyers in the buy-to-let market.

As a whole, foreign buyers accounted for 50 per cent of all successful residential deals. What this tells us is that foreign investors are not merely entering Vietnam to set up operations, they are committed to keeping their money here. This could explain the 15 per cent rise in prime residential prices in Ho Chi Minh City over the past two years.